Efforts to control bank risk address the wrong problem in the wrong way. They presume that the financial crisis was … overlook is the effect on non-executive pay of the competition for talent. Even if executive pay is regulated, and executives … act in the bank's best interests, they will still be trapped into providing incentives that encourage risk-taking by non …

Does an increase in competition increase or decrease bank stability? I exploit how the state-specific process of … loans and increases bank profitability. These findings suggest that competition increases stability as it improves bank … interstate banking deregulation lowered barriers to entry into urban banking markets and find that greater competition …